Just a couple of days after King Salman announced Saudi Arabia's largest budget ever ... the kingdom has paid a total of two billion riyals ($533 million) to low and middle-income families, as part of a new welfare system.

The transfer of the payments began on Thursday to the families - who make up approximately half of the kingdom's population, according to Gulf News.

Around three million families received bank transfers, reaching 10.6 million beneficiaries, with a maximum payment of $250 to half those families. 

Around 20 percent of those who applied for the assistance did not qualify.

Earlier this month, the kingdom announced its plans to start giving household allowances to low and middle-income Saudi households.

The additional funds came in effect to curb the consequences and strains of the kingdom's economic reforms on less fortunate families, a source explained, according to media reports.

Riyadh has instituted major economic reforms with increasing fuel prices and reduced subsidies taking a toll on many Saudi households' disposable income. 

Last December, Saudi leaders said they planned to implement an allowance system to address the problem.

The allowance scheme was delayed due to logistical and planning difficulties, according to sources with knowledge of the matter.

Saudi Arabia's economy in a nutshell

The Saudi economy has been feeling the strain of low oil prices over the past couple of years. 

A 2016 report suggested the kingdom will fall into an economic recession in 2017, for the first time since 1999. Although 2016 turned out better than experts expected, the kingdom still ran a deficit, forcing it to dig deep into its massive foreign reserves. 

Riyadh also sold billions in debt and temporarily cut financial perks to some public sector employees.

In February, it was reported that prices were sinking in Saudi Arabia, as the kingdom faced deflation for the first time in more than a decade.

Despite the struggles, Business Insider reported that the kingdom will be among the 20 most powerful economies in the world in 2030, ranking 13th. 

The publication also said the kingdom will remain firmly in the top 20 until at least 2050.

Saudi Arabia under Crown Prince Mohammed bin Salman

In June, King Salman appointed his son – Prince Mohammed – the former deputy crown prince, as the successor to the throne, removing former crown prince Mohammed bin Nayef from the line of succession. 

MBS has since risen to prominence, taking on an increasingly powerful role in the kingdom and building relationships with international leaders. 

He has also led the charge in reforming Saudi Arabia's economic and social policies, creating an ambitious Vision 2030 plan for the kingdom.

The 32-year-old royal was tasked with leading an anti-corruption campaign in November which saw the arrests of 11 princes, four current ministers, several businessmen, and a number of former government ministers.